EFFECT OF RURAL FINANCE INSTITUTION (RUFIN) SERVICES ON RURAL HOUSEHOLD POVERTY REDUCTION IN ANAMBRA STATE

Abstract

The study evaluated Effects of Rural Finance Institution services (RUFIN) in reducing rural household poverty. Multistage sampling technique was adopted to select 347 respondents (members of agricultural cooperative societies that are rural households’ heads). Primary data was sourced through the use of structured questionnaire. Data collected were analyzed with both descriptive and inferential statistics with the help of SPSS version 20. The descriptive statistics used include frequency tables, simple percentage, weighted mean and Likert scale measure, while the inferential statistics used include Correlation, T test statistics model and ANOVA were used to test the hypotheses formulated.

The result revealed, that most of the Rural Finance Institution (RUFIN) services (educational; technical support services (health) and credit were accessible to rural households. The study also revealed that Rural Finance Institution (RUFIN) educational services have greatly impacted (grand mean(x) = 3.273) positively on the rural household literacy level. Similarly, the result of hypothesis one also affirmed   the significant influence of educational services on the improved rural household literacy level. Evidence from the study also revealed that technical support of Rural Finance Institution (RUFIN) services have effectively enhanced the rural household health conditions (grand mean(x) = 3.418). 

This evidence was further strengthened with result of hypothesis two tested which affirmed the linear (positive) relationship between the Rural Finance Institution (RUFIN) technical support services and improved health conditions of rural households. Evidence from the field survey revealed that the rural household’s standard of living was highly okay after they have accessed the credit services of RUFIN. Since the RUFIN services were greatly accessible to many rural households, therefore the following recommendations are made; RUFIN should improve on monitoring and supervision of credit utilization among the rural households who are the beneficiaries of the services, this will enhance effective utilisation and by extension it will generally improve their standard of living.